Done Deal: Geely Could Officially Own Volvo by Early August

Just four months after signing an agreement to buy Volvo from Ford, Chinese manufacturer Geely is nearly ready to seal the deal. Pending final regulatory approval, Geely could own Volvo as soon as the first week in August.

Geely is buying Volvo for $1.8 billion, with the hope of a two-month turnaround to profitability and increased Volvo sales in China. At the March signing, Geely chairman Li Shufu explained that the purchase would allow Volvo access to new and emerging markets, and the Swedish character of the brand would not be diluted.

The sale has not been without hurdles. In early July, the European Union gave the sale its blessing, and the deal faced a number of regulatory and distribution issues prior to the March signing.If the sale goes through, it will mark Ford's final divestment in European luxury brands, having already sold off Jaguar, Land Rover, and Aston Martin. Geely's $1.8 billion purchase price is less than one-third the price Ford initially paid for the Swedish brand. The two manufacturers expect the deal to be closed in the third quarter of 2010.